Regulatory News:
Vivendi (Paris:VIV):
Revenues (in Third quarter First nine months
millions of of 2020 of 2020
euros)
Change Change at Change Change at
year-on-year constant year-on-year constant
currency and currency and
perimeter(1) perimeter(1)
Universal Music 1,855
Group +3.0% +6.1% 5,314 +5.1% +4.4%
1,380
Canal+ Group +7.3% +0.9% 4,054 +6.6% -0.8%
Havas Group 484 -14.5% -14.1% 1,503 -10.6% -12.5%
Editis(2) 232 +10.4% +10.4% 494 +5.0% -4.8%
Other
businesses(3) 71 -32.6% -31.8% 233 -24.8% -25.2%
4,022 11,598
Total Vivendi +1.3% +0.7% +2.4% -1.1%
This press release contains unaudited consolidated revenues,
established under IFRS.
REVENUES AS OF SEPTEMBER 30, 2020
For the third quarter of 2020, Vivendi's revenues were EUR4,022
million, up 1.3% compared to the same period in 2019, mainly
resulting from the growth of Universal Music Group (UMG) (+3.0%),
Canal+ Group (+7.3%) and Editis (+10.4%). At constant currency and
perimeter(1) , revenues increased by 0.7% compared to the third
quarter of 2019, primarily driven by the growth of UMG (+6.1%) and
Editis (+10.4%).
For the first nine months of 2020, Vivendi's revenues were
EUR11,598 million, up to 2.4% (-1.1% at constant currency and
perimeter (1) ) compared to the same period in 2019. This increase
was mainly due to the growth in revenues of Vivendi's two main
businesses, UMG and Canal+ Group, demonstrating the resilience of
their subscription-based activities. The increase was partially
offset by the slowdown in the revenues of Havas Group and Vivendi
Village, which were affected by the COVID-19 pandemic.
During the first nine months of 2020, Vivendi's net financial
debt fell by EUR926 million, from EUR4,064 million as of December
31, 2019 to EUR3,138 million as of September 30, 2020. Vivendi has
significant financing capacity. As of September 30, 2020, the
Group's long-term credit lines were available in the amount of
EUR3.1 billion.
As of September 30, 2020, the average "economic" term of the
financial debt, calculated based on the assumption that available
medium-term credit lines may be used to redeem the group's
shortest-term borrowings, is 4.7 years (compared to 5.3 years as of
December 31, 2019).
OPENING OF UMG'S SHARE CAPITAL
Vivendi successfully completed the first phase of the opening of
UMG's share capital. On March 31, 2020, the Group finalized the
sale of 10% of the share capital of UMG to a Tencent-led consortium
based on an enterprise value of EUR30 billion for 100% of UMG.
The consortium, which is led by Tencent and includes Tencent
Music Entertainment and other financial co-investors, has the
option to acquire, on the same valuation basis, up to an additional
10% of the share capital of UMG until January 15, 2021.
This transaction is complemented by a separate agreement
allowing Tencent Music Entertainment to acquire a minority stake in
the capital of the UMG subsidiary owning its Greater China
operations.
Following the success of this significant strategic transaction,
Vivendi is pursuing its plan to sell additional minority interests
in UMG with the assistance of several mandated banks. An IPO is
planned for 2022.
The cash generated by these transactions may be used by Vivendi
to reduce its financial debt and to finance a significant share
buyback program and acquisitions.
SHARE BUYBACK PROGRAM
Since January 1, 2020, Vivendi repurchased 58.4 million of its
own shares (i.e., 4.92% of its share capital), representing
EUR1,368 million, including 23.02 million shares under the previous
buyback program and 35.35 million shares under the current
program.
As of October 19, 2020, Vivendi holds 62.3 million treasury
shares, representing 5.25% of the share capital, of which 46.2
million shares are allocated to cancellation, 7.5 million shares
allocated to covering performance share plans, and 8.6 million
shares are held to back sales to employees and corporate officers
(under employee shareholding plans).
LAGARDERE SCA
On October 19, 2020, Vivendi owned 28.3% of the share capital
and 21.5% of the voting rights of Lagardère SCA.
In the wake of the very poor results announced by Lagardère,
Vivendi and Amber Capital, despite their differences, signed a pact
on August 10, 2020, that notably includes each seeking minority
representation on Lagardère's Supervisory Board, three seats for
Amber Capital and one seat for Vivendi. The two companies, wanting
to stabilize Lagardère's shareholder base, also entered into a
five-year reciprocal right of first offer and preemption rights
agreement on their respective Lagardère shares.
After the Supervisory Board and the Managing Partners of
Lagardère refused the respective requests of Vivendi and Amber
Capital, Lagardère's first and second-largest shareholders, to call
an extraordinary general meeting of Lagardère shareholders, these
two companies filed a motion at the beginning of September 2020
with the Paris Commercial court seeking the convening of such
meeting.
On October 14, 2020, the Paris Commercial Court denied this
request. Vivendi, which remains confident in the merits of this
request, will appeal against this decision.
COMMENTS ON THE REVENUES BY BUSINESS SEGMENT
Universal Music Group
For the first nine months of 2020, Universal Music Group's (UMG)
revenues were EUR5,314 million, up 4.4% at constant currency and
perimeter compared to the first nine months of 2019 (+5.1% on an
actual basis).
For the first nine months of 2020, recorded music revenues grew
by 6.2% at constant currency and perimeter thanks to the growth in
subscription and streaming revenues (+15.8%) and the receipt of a
digital royalty claim in the first quarter of 2020. Physical sales
were down 10.2% compared to the first nine months of 2019, while
download sales declined by 20.1%.
Recorded music best sellers for the first nine months of 2020
included new releases from The Weeknd, King & Prince, BTS,
Justin Bieber and Lil Baby, as well as continued sales from Billie
Eilish and Post Malone.
For the week of August 21 to August 27, 2020, UMG set a new
record by having nine of the Top 10 albums in the United States on
the Billboard 200 for only the fourth time in the chart's 64-year
history. UMG has been responsible for all four of those instances.
UMG also ranked No. 1 on the Billboard 200 album charts for
15 consecutive weeks, the most weeks at No. 1 for any company
since UMG held the spot for 16 straight weeks in 2014. In the
United Kingdom, UMG had nine of the Top 10 releases on the official
album charts for the week ending September 10, 2020.
Music publishing revenues grew by 15.6% at constant currency and
perimeter compared to the first nine months of 2019, driven by
increased subscription and streaming revenues, as well as the
receipt of a digital royalty claim in the second quarter of
2020.
Merchandising and other revenues were down 42.6% at constant
currency and perimeter compared to the first nine months of 2019,
due to the impact of the COVID-19 pandemic on both touring and
retail activity.
In August 2020, UMG announced two key partnerships in China, a
multi-year extension of its licensing agreement with Tencent Music
Entertainment Group and a new multi-year licensing agreement with
NetEase Cloud Music.
Canal+ Group
For the third quarter of 2020, Canal+ Group's revenues were
EUR1,380 million, up 0.9% at constant currency and perimeter
compared to the third quarter of 2019.
For the first nine months of 2020, Canal+ Group's revenues were
EUR4,054 million, up 6.6% compared to the same period in 2019. At
constant currency and perimeter, revenues decreased slightly
(-0.8%). Canal+ Group's total subscriber portfolio (individual and
collective) reached 20.4 million, compared to 19.0 million at the
end of September 2019, including 8.6 million in mainland
France.
Revenues from television operations in mainland France decreased
slightly compared to the first nine months of 2019 (-1.6%), in a
context marked by a downturn in the advertising market due to the
COVID-19 pandemic.
Canal+ Group's International activities continue to grow at a
strong pace. Revenues from international operations recorded
sustained growth of 27.4% (+4.3% at constant currency and
perimeter), thanks to the growth in the number of subscribers (+1.2
million year-on-year) across all geographical areas and the success
of the M7 integration as well as the launch in Myanmar.
Studiocanal's revenues declined by 19.6% compared to the same
period in 2019, as the filming and distribution of movies and
series were particularly affected by the pandemic.
On September 29, 2020, Canal+ Group crossed the 5% ownership
threshold in the share capital of the South-African company
MultiChoice Group Ltd, the leader in pay-TV in Africa. This
acquisition, a long-term financial investment, demonstrates the
confidence Canal+ Group and its shareholder Vivendi have in the
prospects of MultiChoice and the African continent, to which they
are firmly committed.
Havas Group
During the third quarter of 2020, the global economy continued
its gradual recovery following a second quarter heavily impacted by
the COVID-19 pandemic. The advertising market is picking up, albeit
to different degrees depending on the region and sector, even if it
remains highly volatile. In these challenging times, Havas Group
reported an improvement in the third quarter with organic net
revenue(4) growth of -10.4% compared to -18.3% in the second
quarter of 2020.
All regions reported improved performances in the third quarter
compared to the second quarter of 2020. The North American agencies
continued to hold up well, thanks to a resilient market and growth
in health and wellness communications. Under the impetus of both
the Creative and Media businesses, Europe improved its overall
performance; however, the results were contrasting between
countries. Both Asia-Pacific and Latin America showed signs of
strong recovery over the third quarter.
For the first nine months of 2020, Havas Group reported revenues
of EUR1,503 million, down 10.6% compared to the same period in
2019. Net revenues were EUR1,449 million, down 8.8%, and organic
growth was -10.9%. Exchange rates had a negative impact of -0.2%
and acquisitions contributed +2.3%.
Havas Group is stepping up its efforts, initiated at the outset
of the crisis, to adjust its organization and cost structure to
limit the impact of falling revenues on EBITA. As a result of this
agility, the pay-off from the cost- adjustment plan will enable
Havas Group to absorb over half of the decline in its revenues over
full-year
2020 (before restructuring charges).
During the third quarter of 2020, Havas made two targeted
acquisitions (majority shareholdings): Australian media agency
Hyland, and Camp + King, a US West Coast agency widely acclaimed
for its creativity.
Editis
Editis' revenues for the third quarter of 2020 increased by
10.4%, a performance all the more favorable since revenues were
already rising in the same period in 2019 driven by the curriculum
reform.
The strength of the market's recovery has helped mitigate much
of the negative impact of the containment and closure of a large
part of the publishing sector's points of sale on sales. Since June
2020, the market has been growing every month compared to 2019.
Revenues for the first nine months of 2020 dropped 4.8% at constant
currency and perimeter compared to the same period in 2019. As a
reminder, revenues for the months of March, April and May were down
approximately 40% compared to the same period in 2019.
The strong performance over recent months is notably due to the
success of a number of Editis titles, which are among this autumn's
best-sellers across all categories: hardback literature with Ken
Follett's last novel, Le Crépuscule et l'Aube (Robert Laffont
publishing house, worldwide release) and Marc Lévy's C'est Arrivé
la Nuit (Robert Laffont/Vesilio publishing house); cookbooks with
the success of the first and second volumes of Fait Maison by Cyril
Lignac; non-fiction with Toujours Plus by the two-million
subscriber influencer Léna Situations (Robert Laffont publishing
house); and the youth segment with the good results of L'agenda
Scolaire by Roxane (Solar publishing house).
Several of Editis' autumn releases were selected for prestigious
literary awards: La Grâce by Thibault de Montaigu (Plon publishing
house) was selected for the Prix de Flore, le Prix des deux Magots
and the Prix Interallié; La Chambre des Dupes by Camille Pascal
(Plon publishing house) is among the first selected for the
Goncourt des lycéens after being in the first selection of the Prix
Goncourt; La Chasse aux Âmes by Sophie Blandinières (Plon
publishing house) is on the Prix André Malraux selection list.
Apeirogon by Colum McCann (Belfond publishing house), Les Graciées
by Kiran Millwood Hargrave (Pavillon collection of Robert Laffont
publishing house), and Kaspar l'Obscur ou l'Enfant de la Nuit by
Hervé Mazurel (La Découverte publishing house) are among the second
selected for the Prix Femina; Apeirogon by Colum McCann (Belfond
publishing house) is also among the second selected for the Prix
Medicis. Glory by Elizabeth Wetmore (Escales publishing house) is
among the first selected for the Grand Prix of American literature.
La Femme qui Reste by Anne de Rochas (Les Escales publishing house)
is on the selection list for the Prix du Premier Roman and Kiese
Laymon's Baleze (Les Escales publishing house) is on the America
Magazine Prize selection list and is among the 10 titles of its
ideal library. Falloujah: ma Campagne Perdue (Steinkis/Les Escales
publishing house) is nominated for le Prix Les Inrocks in the
comics category.
Finally, Editis remains the leader in the very competitive
market of senior-year high school curriculum reform, thanks to its
brands Nathan and Bordas.
Other businesses
For the third quarter of 2020, Gameloft's revenues were EUR63
million, up 2.6% (+5.2% at constant currency and perimeter)
compared to the same period in 2019. For the first nine months of
2020, Gameloft's revenues were EUR193 million, down 0.7% compared
to the same period in 2019. For the first nine months of 2020,
Gameloft's sales on OTT platforms (Apple, Google, etc.) increased
by 3.6% and accounted for 74% of Gameloft's total sales. Disney
Magic Kingdoms, Asphalt 9: Legends, March of Empires, Dragon Mania
Legends and Asphalt 8: Airborne were the best-selling titles of the
first nine months of 2020, representing 53% of Gameloft's total
revenues.
Measures banning or restricting the holding of live shows
continue to significantly impact the operations of Vivendi Village.
All the Olympia Production and U Live festivals had to be postponed
until next year. However, several new initiatives were launched,
including Garorock Fête sa rentrée ! held over a day in September
with capacity limited to 4,000 people, and J2v, a fully virtual
techno music festival to which fans from over 200 countries
connected in July. Vivendi Village has implemented significant cost
reduction measures while developing future various monetization
methods for streaming shows.
For the first nine months of 2020, New Initiatives, which brings
together Dailymotion and the GVA entities, recorded revenues of
EUR44 million, compared to EUR50 million for the same period in
2019 (-11.4% at constant currency and perimeter compared to the
same period in 2019).
For the third quarter of 2020, revenues were EUR16 million, up
3.9% at constant currency and perimeter compared to the same period
in 2019.
Over this period, Dailymotion's premium audience grew by 6%
compared to the third quarter of 2019. This growth was notably
driven by new partnerships with Xiaomi, which now offers
Dailymotion videos on its mobile phones, the EPCR (European
Professional Club Rugby) as well as EuroLeague basketball in
Europe, Sports Illustrated in the United States, AMC Television
Network at LATAM, The Star in Malaysia, News Nation in Thailand and
Brillio in Indonesia.
For its part, in the third quarter of 2020, GVA notably
continued the intensification of its network in Libreville, Lomé
and Pointe Noire, as well as the extension of its network in
Abidjan and Kigali. At the same time, the high broadband access
provider launched new marketing and communication campaigns in
Gabon, Congo and Ivory Coast, to continue the good sales
performance recorded so far and to support the expected growth in
the last quarter of 2020.
Calendar
Wednesday, March 3, 2021: release of Vivendi's 2020 annual
earnings
Thursday, April 22, 2021: release of Vivendi' first quarter 2021
revenues
Tuesday, June 22, 2021: Vivendi's Annual General Shareholders'
Meeting
About Vivendi
Since 2014, Vivendi has been focused on building a world-class
content, media and communications group with European roots. In
content creation, Vivendi owns powerful, complementary assets in
music (Universal Music Group), movies and series (Canal+ Group),
publishing (Editis) and mobile games (Gameloft) which are the most
popular forms of entertainment content in the world today. In the
distribution market, Vivendi has acquired the Dailymotion platform
and repositioned it to create a new digital showcase for its
content. The Group has also joined forces with several telecom
operators and platforms to maximize the reach of its distribution
networks. In communications, through Havas, the Group possesses
unique creative expertise in promoting free content and producing
short formats, which are increasingly viewed on mobile devices. In
addition, through Vivendi Village, the Group explores new forms of
business in live entertainment, franchises and ticketing that are
complementary to its core activities. Vivendi's various businesses
cohesively work together as an integrated industrial group to
create greater value. www.vivendi.com
Important Disclaimers
Cautionary Note Regarding Forward-Looking Statements This
presentation contains forward-looking statements with respect to
Vivendi's financial condition, results of operations, business,
strategy, plans, and outlook of Vivendi, including the impact of
certain transactions and the payment of dividends and
distributions, as well as share repurchases. Although Vivendi
believes that such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance. Actual results may differ materially from the
forward-looking statements as a result of a number of risks and
uncertainties, many of which are outside Vivendi's control,
including, but not limited to, the risks related to antitrust and
other regulatory approvals as well as any other approvals which may
be required in connection with certain transactions and the risks
described in the documents of the group filed by Vivendi with the
Autorité des Marchés Financiers (French securities regulator) and
its press releases, if any, which are also available in English on
Vivendi's website (www.vivendi.com).
Investors and security holders may obtain a free copy of
documents filed by Vivendi with the Autorité des Marchés Financiers
at www.amf-france.org, or directly from Vivendi. Accordingly,
readers of this presentation are cautioned against relying on these
forward-looking statements. These forward-looking statements are
made as of the date of this presentation. Vivendi disclaims any
intention or obligation to provide, update or revise any
forwardlooking statements, whether as a result of new information,
future events or otherwise.
Although the COVID-19 pandemic is having a more significant
impact on certain countries or businesses than others, Vivendi has
been able to demonstrate resilience and adapt in order to continue
to best serve and entertain its customers, while reducing costs to
preserve its margins. The business activities showed good
resistance, in particular music and pay television. However, as
previously mentioned, the other businesses were affected by the
effects of the public health crisis.
Vivendi continually monitors the current and potential
consequences of the crisis. It is difficult at this time to
determine how it will impact its annual results. Businesses related
to advertising and live performance are more affected than others.
Nevertheless, the Group remains confident in the resilience of its
main businesses. It continues to make every effort to ensure the
continuity of its activities and best serve and entertain its
customers and audiences while complying with the authorities'
guidelines in each country where it operates.
During the first nine months of 2020, Vivendi's net financial
debt fell by EUR926 million, from EUR4,064 million as of December
31, 2019 to EUR3,138 million as of September 30, 2020. Vivendi has
significant financing capacity. As of September 30, 2020, the
Group's long-term credit lines were available in the amount of EUR
3.1 billion.
As of September 30, 2020, the average "economic" term of the
financial debt, calculated based on the assumption that available
medium-term credit lines may be used to redeem the group's
shortest-term borrowings, is 4.7 years (compared to 5.3 years as of
December 31, 2019).
Unsponsored ADRs Vivendi does not sponsor an American Depositary
Receipt (ADR) facility in respect of its shares. Any ADR facility
currently in existence is "unsponsored" and has no ties whatsoever
to Vivendi. Vivendi disclaims any liability in respect of any such
facility.
ANALYST CONFERENCE CALL
Speakers:
Arnaud de Puyfontaine
Chief Executive Officer
Hervé Philippe
Member of the Management Board and Chief Financial Officer
Date: October 20, 2020
6:15 pm Paris time -- 5:15 pm London time -- 12:15 pm New York
time
Media invited on a listen-only basis.
The conference call will be held in English.
Internet: The conference call can be followed on the Internet
at: www.vivendi.com (audiocast)
Numbers to dial:
France: +33 (0) 1 7037 7166
UK: +44 (0) 20 3003 2666
USA: +1 212 999 6659
access code: Vivendi
An audio webcast and the slides from the presentation will be
available on our website www.vivendi.com.
APPENDIX I
VIVENDI
REVENUES BY BUSINESS SEGMENT
(IFRS unaudited)
Third quarter
Three months ended
September 30,
% Change
at
constant
% Change currency
at and
(in millions of constant perimeter
euros) 2020 2019 % Change currency (a)
Revenues
Universal Music
Group 1,855 1,800 +3.0% +6.1% +6.1%
Canal+ Group 1,380 1,285 +7.3% +8.1% +0.9%
Havas Group 484 567 -14.5% -12.1% -14.1%
Editis 232 210 +10.4% +10.4% +10.4%
Gameloft 63 61 +2.6% +6.1% +5.2%
Vivendi Village 8 42 -80.1% -80.0% -80.2%
New Initiatives 16 16 +3.9% +3.9% +3.9%
Elimination of
intersegment
transactions (16) (11)
Total Vivendi 4,022 3,970 +1.3% +3.4% +0.7%
First nine months
Nine months ended
September 30,
% Change
at
constant
% Change currency
at and
(in millions of constant perimeter
euros) 2020 2019 % Change currency (a)
Revenues
Universal Music
Group 5,314 5,058 +5.1% +5.0% +4.4%
Canal+ Group 4,054 3,803 +6.6% +7.0% -0.8%
Havas Group 1,503 1,681 -10.6% -10.3% -12.5%
Editis 494 470 +5.0% +5.0% -4.8%
Gameloft 193 194 -0.7% -0.2% -0.5%
Vivendi Village 34 108 -68.4% -68.4% -68.9%
New Initiatives 44 50 -11.4% -11.4% -11.4%
Elimination of
intersegment
transactions (38) (41)
Total Vivendi 11,598 11,323 +2.4% +2.6% -1.1%
a. Constant perimeter reflects the impacts of the acquisition of
M7 by Canal+ Group (September 12, 2019), the acquisition of the
remaining interest in Ingrooves Music Group, which was consolidated
by Universal Music Group (March 15, 2019) and the acquisition of
Editis (January 31, 2019).
APPENDIX I (Cont'd)
VIVENDI
REVENUES BY BUSINESS SEGMENT
(IFRS, unaudited)
Quarterly revenues
2020
Three months
(in millions of Three months Three months ended September
euros) ended March 31, ended June 30, 30,
Revenues
Universal Music
Group 1,769 1,690 1,855
Canal+ Group 1,372 1,302 1,380
Havas Group 524 495 484
Editis 116 146 232
Gameloft 61 69 63
Vivendi Village 23 3 8
New Initiatives 15 13 16
Elimination of
intersegment
transactions (10) (12) (16)
Total Vivendi 3,870 3,706 4,022
2019
Three months Three months
Three months Three months ended ended
(in millions of ended March ended June September December
euros) 31, 30, 30, 31,
Revenues
Universal Music
Group 1,502 1,756 1,800 2,101
Canal+ Group 1,252 1,266 1,285 1,465
Havas Group 525 589 567 698
Editis (a) 89 171 210 217
Gameloft 68 65 61 65
Vivendi Village 23 43 42 33
New Initiatives 15 19 16 20
Elimination of
intersegment
transactions (15) (15) (11) (24)
Total Vivendi 3,459 3,894 3,970 4,575
a. As a reminder, Vivendi has fully consolidated Editis since
February 1, 2019.
(1) Constant perimeter reflects the impacts of the acquisition
of M7 by Canal+ Group (September 12, 2019), the acquisition of the
remaining interest in Ingrooves Music Group, which was consolidated
by Universal Music Group (March 15, 2019) and the acquisition of
Editis (January 31, 2019).
(2) Editis has been consolidated since February 1, 2019. Pro
forma growth is presented.
(3) Including elimination of intersegment transactions.
(4) Net revenues correspond to revenues less pass-through costs
rebilled to customers.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20201020006070/en/
CONTACT: Media
Paris
Jean-Louis Erneux
+33 (0)1 71 71 15 84
Solange Maulini
+33 (0) 1 71 71 11 73
Investor Relations
Paris
Xavier Le Roy
+33 (0) 1 71 71 18 77
Nathalie Pellet
+33(0)1 71 71 11 24
Delphine Maillet
+33 (0)1 71 71 17 20
SOURCE: Vivendi
Copyright Business Wire 2020
(END) Dow Jones Newswires
October 20, 2020 13:10 ET (17:10 GMT)
Vivendi (PK) (USOTC:VIVHY)
Historical Stock Chart
From Feb 2024 to Mar 2024
Vivendi (PK) (USOTC:VIVHY)
Historical Stock Chart
From Mar 2023 to Mar 2024